Lesson: Simple Interest
Lesson Objective
Lesson Plan
Aim/Objective: 
Key Points 

Calculate simple interest 
· Interest  is an amount that you pay in order to use or borrow money or the amount earned on top of money that you invest. · Principal  is the amount of money you borrow or invest · Interest Rate  is the rate of interest paid over a given period of time, usually one year 

Assessment: 



Lesson 

· _interest_is an amount that you pay in order to use or borrow money or the amount earned on top of money that you invest.
· Principal __ is the amount of money you borrow or invest.
· __interest rate_ is the rate of interest paid over a given period of time, usually one year
Notes:
Walk through examples/notes with students. First you will be given three pieces of information – the principal, interest and time. Now we can find the amount of interest by following the three steps:
· There are three steps to finding interest. Let’s look at the following example:
Principal: $450 Interest Rate: 4.9% Time: 6 months
· Step 1: Use the Interest Formula. Fill in the information that you are given.
I = p x r x t
Change the numbers so you can calculate § 4.9% = 0.049 § 6 months = = year = 0.5
Step 2: Multiply to find the interest
Interest is about $11.03
o Step 3: Add to find the principal plus the interest
Guided Practice Walk through examples with students for finding interest
Find the simple interest and the sum of the principal and the interest for each.

Lesson Resources
Simple Interest HW 
1,430

Simple Interest CW 
1,158

Simple Interest Notes 
1,404

Comments